Portfolio news - Molendotech raises £425,000
RNS Reach
AIM: FIPP
01 May 2020
Frontier IP Group plc
("Frontier IP" or the "Group")
Portfolio news - Molendotech raises £425,000 to accelerate development of novel rapid tests for harmful bacteria
Frontier IP, a specialist in commercialising intellectual property, today notes the following announcement from portfolio company Molendotech Limited ("Molendotech" or the "Company") that it has raised £425,000 through an equity funding round.
The proceeds from the equity funding round will be used by Molendotech to accelerate development and expand the applications of the Company's novel rapid testing technology for bacteria, which has attracted strong interest internationally from potential customers concerned about secondary infections as they tackle the COVID-19 outbreak. Palintest, a subsidiary of FTSE 100 group Halma plc, has already launched a commercial kit based on the technology to detect faecal bacteria in recreational water.
The Company has also developed a novel method to detect specific pathogenic bacteria. This investment will enable further development of this technology in new markets including the food industry. The Company is collaborating with one of Europe's leading fresh produce companies, G's Group, to develop tests to detect the levels of different bacteria in fresh produce, irrigation water, wash water and food contact areas.
The fundraising, supported by new and existing private investors, means the University of Plymouth spin out is now worth £3.9 million valuing Frontier IP's 12.6 per cent equity stake at £493,000. Before the funding round, Frontier IP held a 14.1 per cent equity stake worth £324,000.
Frontier IP Chief Executive Officer, Neil Crabb, said: "Molendotech has already made strong progress, with its technology now being commercialised by a subsidiary of major multinational hazard detection group Halma plc. The COVID-19 outbreak and the heightened need for testing of all kinds has increased interest in the Company's technology. This fundraising ensures it is well placed to accelerate development of its technology and to explore opportunities as they arise."
Molendotech statement is set out in full below:
Molendotech raises £425,000 to accelerate development of technology for rapid detection of pathogenic bacteria
Molendotech Limited (the "Company") today announces it has raised £425,000 to accelerate development of its innovative rapid pathogen detection technology through an equity funding round.
The fundraising values the Company at £3.9 million, up from its previous valuation of £2.3 million, reflecting the success it has achieved in commercialising its patented technology. Palintest, a subsidiary of FTSE 100 life protection and hazard detection group Halma plc, is already selling SirenBW, , a testing kit based on the technology to detect faecal bacteria in bathing water.
Molendotech's technology cuts the time it takes to test for faecal bacteria in water from up to two days to under an hour, with the Palintest SirenBW kit taking as little as 15 minutes. This technology can be used in real time and on site, removing the need for samples to be sent to a laboratory.
The Company, a University of Plymouth spin out, has also recently developed a novel method to detect specific pathogenic bacteria. The current investment will enable further development of this technology in new markets including the food industry.
Molendotech is collaborating with one of Europe's leading fresh produce companies G's Group, a supplier to Asda, Sainsbury's, Tesco and many other major retailers, on tests to detect the levels of different bacteria in fresh produce, irrigation water, wash water and food contact areas.
The technology has also received strong interest internationally from potential customers concerned about the risk of secondary infections resulting from the COVID-19 outbreak.
The new funding will ensure Molendotech can step up development of its technology and take advantage of opportunities as they arise. Investment has come from new and existing private investors.
The Company was incorporated in 2017 to develop and commercialise the work of Professor Simon Jackson, Honorary Professor at the University of Plymouth's Peninsula Medical School.
Molendotech Chief Executive Officer Professor Simon Jackson, Honorary Professor of the Peninsula Medical School, University of Plymouth, said: "Molendotech continues to use its research capabilities to develop novel solutions to protect human health from environmental risks. Commercial assays of our initial technology are helping to deliver rapid risk assessments for users of recreational water.
"Our new technology will allow detection of specific bacterial pathogens within hours, much faster than conventional culture assays. This investment will allow us to further develop our technology for use in new markets. In particular, it will help to support and expand our work with large food producers to rapidly assess food safety and enhance food supply to retailers."
Molendotech Business Development Director, Rui Andres, said: "SirenBW is showing commercial traction and the feedback is encouraging. The new technology is showing very encouraging results in rapidly detecting and quantifying pathogenic bacteria, such as E.coli O157, producing results within a couple of hours. This could dramatically reduce the number of recalls in food industry and its associated cost."
Molendotech statement ends.
ENQUIRIES
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Frontier IP Group plc |
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Neil Crabb, Chief Executive Officer Andrew Johnson, Communications & Investor Relations Company website: www.frontierip.co.uk |
T: 0207 332 2338 M: 07464 546 025 |
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Allenby Capital Limited (Nominated Adviser) |
T: 0203 328 5656 |
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Nick Athanas / Nicholas Chambers
Molendotech Ltd Simon Jackson, Chief Executive Officer Rui Andres, Director of Business Development |
M: 07384 469486
M: 07462 034756 |
Company website: www.molendotech.com
ABOUT FRONTIER IP
Frontier IP unites science and commerce by identifying strong intellectual property and accelerating its development through a range of commercialisation services. A critical part of the Group's work is involving relevant industry partners at an early stage of development to ensure technology meets real world demands and needs.
The Group looks to build and grow a portfolio of equity stakes and licence income by taking an active involvement in spin-out companies, including support for fund raising and collaboration with relevant industry partners at an early stage of development.
ABOUT THE UNIVERSITY OF PLYMOUTH
The University of Plymouth is renowned for high quality, internationally-leading education, research and innovation.
With a mission to Advance Knowledge and Transform Lives, Plymouth is a *top 50 research university with clusters of world class research across a wide range of disciplines including marine science and engineering, medicine, robotics and psychology. A three-time winner of the Queen's Anniversary Prize for Higher and Further Education, the University of Plymouth continues to grow in stature and reputation.
It has a strong track record for teaching and learning excellence and has one of the highest numbers of National Teaching Fellows of any UK university. With over 19,000 students, and a further 9,500 studying for a Plymouth degree at partner institutions in the UK and around the world, and over 130,000 alumni pursuing their chosen careers globally, it has a growing global presence.
* Research Fortnight Research Power League Table 2014.
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